This is one in a series of posts designed to describe court decisions in plain English. For more detail and background on the legal issues, see the link to the case below. For similar posts, click here.
SCOTUSblog: Clark v. Rameker
Issue: The question before the Court is whether an individual retirement account that a debtor has inherited is exempt from the debtor's bankruptcy estate under Section 522 of the Bankruptcy Code, 11 U.S.C. § 522, which exempts "retirement funds to the extent that those funds are in a fund or account that is exempt from taxation" under certain provisions of the Internal Revenue Code.
Holding: In a unanimous decision, the Supreme Court ruled that funds held in an inherited IRA account are not "retirement funds" within the meaning of the Bankruptcy Code.